Crypto Investments in May Reach $1 Billion, KuCoin Reports
In the month of May, the cryptocurrency market saw a significant influx of investments totaling over $1 billion, a slight decrease from the previous month. KuCoin’s research arm published a report revealing that there were 156 publicly disclosed investments in May, with a total investment capital of $1.02 billion flowing into the crypto space. While this represented a 10.61% increase compared to May 2023, it also indicated a 6.4% decline from April’s figures.
Among institutional investors, Ethereum, Ethereum Virtual Machine (EVM) chains, and layer-2 (L2) network projects remained popular choices for investment. However, non-EVM chains like Bitcoin, Solana, Fantom, and TON also ranked among the top 15 networks favored by investors in May.
The report highlighted Animoca Brands and OKX Ventures as the most active investors during the month, engaging in 15 and 11 deals respectively. Other active investors included Cogitent Ventures, SNZ Holding, and DWF Labs.
KuCoin Research suggested that investors shifted their focus towards memes and celebrity tokens in response to concerns surrounding low float and high fully diluted valuations (FDV) trends in the crypto market. Some market participants sought alternatives by focusing on relatively obscure low-market-cap assets and new narratives. Notcoin (NOT) was one token that benefited from this shift, experiencing significant growth in May.
Crypto fundraising in the first quarter of 2024 reached a record-breaking $2.4 billion, driven by a shift in market sentiment and fresh inflows. A total of 518 deals amounting to $2.3 billion were closed in the first quarter, marking a 40.3% increase in investments compared to the previous quarter.
The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January played a significant role in boosting institutional investors’ access to the crypto asset class. This decision has made it easier for institutional investors to include cryptocurrencies in their portfolios, contributing to the surge in investments seen in the crypto market.
